We are ignoring the signals , and this could be dangerous

On October 11, 2012, i wrote the blog ‘From Emerging to a Submerging Economy’ https://commonmansblog.com/2012/10/11/india-from-emerging-to-a-submerging-economy/

I read the story in the Economic Times today, titled ‘Feast of Burden’ ( Page 10, ET dated August 3-9, 2014). It is almost two years since i wrote my blog and this story on corporate debt. Things are still the same , rather have gone worse . For example ,

The cumulative debt of;

Tata Group is about Rs. 2.00 lac Crore

Reliance ADA Group is about Rs. 83,000 Crore

Jaypee Group is about Rs.66,000 Crore

Bharti Group is about Rs.60,541 Crore

GMR Group is about Rs.37,788 Crore

Lanco Group is about 34, 876 Crore

HCC is about Rs. 11,150 Crore

I am not mentioning the rest of the groups like ESSAR etc…. Small and mid-size companies would further make the situation scary .

It is time that the Government asked all these companies to come out with a clear statement of how they are going to service these debts, to ensure that these companies do not end up creating a ‘cloud burst’ for the Indian middle class and disturb the economic prospects of this developing country